EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 59/2008
Customs Act 1901
Background
Part XVA of the Customs Act 1901 (the Act) sets out a scheme under which Tariff Concession Orders (TCOs) may be made and revoked by the Chief Executive Officer of Customs (the CEO). A lower rate of customs duty applies to goods that are the subject of a TCO.
Under sections 269C and 269P of the Act, a TCO will be made if the application for the TCO meets the core criteria, that is, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business.
Subsection 269SD(2) of the Act provides that if the CEO is satisfied that:
− because of an amendment of the Customs Tariff Act 1995; or
− having regard to a decision of a court of the Administrative Appeals Tribunal; or
− having regard to written advice on the matter given by an officer of Customs;
the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO has not, with effect from a particular day, applied to those goods, the CEO must:
− make an order revoking the TCO with effect from that day; and
− make a new TCO in respect of the goods with effect from the revocation.
Instrument
Tariff Concessions Revocation Instrument No 59/2008 was made on 13 June 2008. It revokes TCO 0804138 and makes TCO’s 0812341 and 0812340. The tariff classification has been changed from 8428.90.00 to 7308.90.00 and 8428.90.00 because of tariff classification changes.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2) provides that the order revoking the TCO has effect from the day on which the tariff classification did not apply to the goods. Further the new TCO has effect from the revocation. Subsection 269SD(4) provides that the day may be the day on which the old TCO came into force or a later day.
Subsection 269SD(6) provides that section 269SD has effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concessions Revocation Instrument No. No 59/2008 was made on 13 June 2008. It revokes TCO 0804138 and makes TCO’s 0812341 and 0812340. The tariff classification has been changed from 8428.90.00 to 7308.90.00 and 8428.90.00, with the Revocation date of effect as from 14 March 2008
Overview
The Customs Act 1901, enacted by the Commonwealth Parliament, establishes a framework for the administration of customs and excise duties, among other things. Specifically, Part XVA of the Act provides a mechanism for the creation and revocation of Tariff Concession Orders (TCOs), which apply lower rates of customs duty to specified goods. The Tariff Concessions Revocation Instrument 59/2008 was introduced to address a gap in the existing tariff concessions scheme by revoking an existing TCO and issuing new ones in response to changes in tariff classifications. This legislative instrument was made on 13 June 2008 and revokes TCO 0804138 while issuing new TCOs 0812341 and 0812340. The revocation and new concessions are effective from 14 March 2008, with the aim of aligning tariff classifications with the current customs tariff structure as determined by the Chief Executive Officer of Customs.
Scope and Application
The Tariff Concessions Revocation Instrument 59/2008, made under the Customs Act 1901, addresses the revocation and subsequent re-establishment of Tariff Concession Orders (TCOs) for specific goods, following changes in tariff classification. The Act applies to goods whose tariff classifications have been affected by amendments to the Customs Tariff Act 1995, court decisions, or written advice from Customs officers. The revocation and creation of new TCOs under this instrument are governed by section 269SD(2) of the Customs Act, which mandates the Chief Executive Officer of Customs to revoke and replace a TCO if the tariff classification of the goods changes. The instrument revokes TCO 0804138 and introduces TCOs 0812341 and 0812340, with the changes in tariff classification effective from 14 March 2008. The instrument's scope is limited to the specific goods identified, and it does not apply to other goods or entities outside the scope of these classifications. The revocation and new TCOs take effect from the date the previous tariff classification no longer applied, as outlined in section 269SD(4) of the Customs Act, ensuring that the changes do not operate retrospectively contrary to section 12 of the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 59/2008 under the Customs Act 1901 (section 269C and 269P) facilitates the revocation and replacement of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (section 269SD(2)). This instrument, made on 13 June 2008, revokes TCO 0804138 and replaces it with TCOs 0812341 and 0812340. The revocation and replacement are due to changes in tariff classification, which have shifted from 8428.90.00 to 7308.90.00 and 8428.90.00. The instrument takes effect from the date the tariff classification ceased to apply to the goods, which was 14 March 2008, as per subsection 269SD(2).
The Customs Act 1901 imposes specific obligations on parties governed by this Act, particularly in relation to the application and revocation of TCOs. The CEO must ensure that no substitutable goods are produced in Australia in the ordinary course of business on the day the application for a TCO is lodged (section 269C). If the CEO is satisfied that a TCO no longer applies due to changes in tariff classification, a decision by the Administrative Appeals Tribunal, or written advice from an officer of Customs, the CEO must revoke the existing TCO and issue a new one (section 269SD(2)). This process ensures that the correct tariff classification is applied to the goods, reflecting the most current legislative and administrative decisions.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 59/2008 may result in civil or criminal penalties. The Act does not explicitly state the maximum penalties for breaches; however, the consequences can include fines and, in severe cases, imprisonment. The specific penalties depend on the nature and severity of the breach, as well as any relevant case law or statutory guidelines. It is essential for parties governed by the Act to adhere to the tariff classifications and revocation requirements to avoid legal repercussions.
The Tariff Concessions Revocation Instrument 59/2008, while minor and of a machinery nature, highlights the importance of keeping tariff classifications up-to-date. The decision not to consult on this instrument suggests that the changes do not substantially alter existing arrangements. However, it remains crucial for stakeholders to stay informed about changes in tariff classifications to ensure compliance with the Customs Act 1901. The instrument's effective date, 13 June 2008, marks the point from which the new TCOs apply, reinforcing the need for continuous monitoring of tariff regulations.